An Exploratory Factor Analysis of the Location -Specific Antecedents to Foreign Direct Investment in Post- Crisis Zimbabwe (2009 - 2015)

2018 ◽  
Vol 10 (3(J)) ◽  
pp. 111-121
Author(s):  
Tafadzwa Matiza ◽  
Sandra Perks
Keyword(s):  
Factor Analysis ◽  
Foreign Direct Investment ◽  
Exploratory Factor Analysis ◽  
International Business ◽  
Direct Investment ◽  
Policy Makers ◽  
Foreign Investors ◽  
Entry Strategies ◽  
Business Opportunities ◽  
Purposive Sample

While there are a plethora of studies based on the generic determinants of foreign direct investment, there is a discernible dearth of research into location - specific antecedents of distinct foreign direct investment typologies. This paper identifies the location- specific antecedents influencing foreign investors considering exploiting international business opportunities in post- crisis Zimbabwe. The literature provided the bases for the propositions advanced by this paper. Quantitative survey data was generated from a purposive sample of n=305 foreign investors. An exploratory factor analysis was conducted. The findings suggest that post- crisis Zimbabwe possesses the location- specific antecedents required by market- , resource - , efficiency-, and strategic asset- seeking FDI inflow. It is recommended that Zimbabwean policy- makers take cognisance of these nuances and implement appropriate market entry strategies to lure investors to Zimbabwe to grow the post- crisis economy.

scholarly journals The Origin of Crony Capitalism in Modern Mexico and its Current Impact on Foreign Direct Investment

Norteamérica ◽  
2021 ◽  
Vol 16 (2) ◽  
Author(s):  
José Galindo
Keyword(s):  
Foreign Direct Investment ◽  
International Business ◽  
Direct Investment ◽  
Negative Consequences ◽  
Foreign Investors ◽  
Doing Business ◽  
Crony Capitalism ◽  
Current Impact ◽  
Domestic Power ◽  
Domestic Level

This paper analyses to what extent crony capitalism (CC) affects international business activities. By using the case of Canadian companies investing in mining in Mexico, I explain in which ways CC impacts foreign direct investment. My argument is that CC does not imply negative consequences for international business activities if other variables are controlled at the domestic level. CC could even generate positive incentives to foreign investors, deepening corruption problems internally. This type of corruption does not elevate the risk perceived by foreign investors if the process of doing business in Mexico is under the control of domestic power groups.

scholarly journals Evaluating Foreign Direct Investment and Africa’s Development

1970 ◽  
Vol 18 (1) ◽  
pp. 46-69
Author(s):  
Nicholas Onyemechi Alumona
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Investment Policy ◽  
African Continent ◽  
Policy Makers ◽  
Foreign Investors ◽  
Economic Problems ◽  
Slow Pace ◽  
The Social ◽  
The World

The question of Africa’s development has continued to occupy the front burner from the social and economic discussions by scholars of various divides. But Africa’s development through foreign direct investment has become a recent challenge to the African continent. African social critics and commentators as well as Western scholars have attributed the seeming slow pace of development in Africa to several factors discouraging foreign direct investment. Suggestions and literature on how to overcome these factors abound; all calling on African states to provide the enabling environment for foreign investors under this arrangement to help in solving Africa’s socio-economic problems. In this essay, we adopt the method of analysis and argue that rather than blame African states for the underperformance of foreign direct investment, policy makers should be more humanistic in entering into economic agreement with the advanced countries of the world and ensure that such agreements accommodate certain positive values of the host continent. It therefore concludes that with interculturalism as the foundation of any economic solution to Africa’s development problem, whether external or homegrown, Africans would appreciate and participate more in development activities that concern them.

Ethical Responsibilities of Brick and Mortar Retailers

Think India ◽  
2017 ◽  
Vol 20 (3) ◽  
pp. 10-20
Author(s):  
Bodh Raj Sharma
Keyword(s):  
Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Empirical Investigation ◽  
Ethical Responsibility ◽  
Policy Makers ◽  
Better Regulation ◽  
Brick And Mortar ◽  
Regulatory Bodies ◽  
Ethical Responsibilities

Retailers have ethical responsibilities in their dealings with different stakeholders. All the stakeholders have expectations from retailers and the retailers in obligation to fulfil their expectations in an ethical manner. Retailers have ethical responsibility towards customers, employees, suppliers, financers, competitors, government, and the community as a whole. In fact, some researchers have conceptualised responsibilities of retailers but the in-depth empirical investigation has not yet done. The study empirically examines the ethical responsibilities of brick and mortar retailers towards various stakeholders. The data were obtained from 200 retailers through a self-designed schedule. The exploratory factor analysis extracted ten factors out of various variables representing ethical responsibilities of retailers towards different stakeholders. The results indicate that brick and mortar retailers are moderately ethical towards various stakeholders. The present study will be highly beneficial for the researchers, retailers, customers, regulatory bodies and policy makers for new insights and better regulation.

Role of foreign direct investment – As a strategic move towards growth, economic integration and development

2021 ◽  
pp. 002072092199659
Author(s):  
Rima H BinSaeed
Keyword(s):  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Vital Role ◽  
Foreign Investors ◽  
Technological Infrastructure ◽  
Industrial Sectors ◽  
Vision 2030 ◽  
International Investors ◽  
The Government

Kingdom of Saudi Arabia with its developed economy and advanced technological infrastructure has shown a major progress in business opportunities for overseas investors. Saudi Arabia’s education sector is one of the most attractive investment opportunities for the foreign investors Earlier in 2019, 9 new foreign education enterprises were granted investor licenses, amounting to a total of $141mn of investment deals. The Saudi government introduced Saudi Vision 2030, an aspiring development plan that foresees vital prospects for foreign investors in the regions of education, housing, health and energy, amongst others. In 2016, Saudi Arabia permitted the procurement of 100% of assets by foreign investors in retail and wholesale trade. A privatisation program has also been introduced. The government also attempts to attract FDI in the regions of renewable energy and entertainment. A foreign direct investment (FDI) plays a vital role in local and international economy. Several opportunities and ventures are encouraged by Saudi Arabia to improve the standard of business and economical environments. To accomplish the finances for the projects SAGIA, the lawful authority is there to smooth the progress of investments, which encourages Saudi FDI prospective to grow simultaneously. FDI has a greater scope for diverse businesses and investing in to underdeveloped industrial sectors. FDI plays an important role in boosting the economy of Saudi Arabia by managing international investors who shares the huge portion of 34% in General GDP (Gross domestic product) of Saudi Arabia. This paper aims to review the literature to shed light on the steps taken by the government to increase FDI in the country and what are the current trends that are helping to fulfil VISION 2030.

scholarly journals DETERMINANTS OF ASSETS GROWTH OF FOREIGN OWNED BANKS IN INDONESIA

2020 ◽  
Vol 13 (2) ◽  
pp. 41-50
Author(s):  
Aswin Rivai ◽  
Rina Indiastuti
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rate ◽  
Direct Investment ◽  
Bilateral Trade ◽  
Operating Experience ◽  
Local Environment ◽  
Least Square ◽  
Policy Makers ◽  
Foreign Countries ◽  
Long Time

The aim of this research is to assess the dominant factors enabling foreign owned banks to increase their assets in Indonesia and to confirm whether the “follow the customers hypothesis” is also applicable in motivating foreign owned banks to do business in Indonesia to support investment and trade activities of the companies originated from foreign countries. Using the panel data of 28 foreign owned commercial banks in Indonesia between 2006-2015 obtained from Indonesian Banking Directory, Indonesian Banking Statistics databases, foreign country central bank websites, a least square dummy variable (LSDV) regression model was applied to examine the effect of Bilateral Trade, Foreign Direct Investment (FDI), Interest Rate Differences, Domestic Deposits, Parent banks Return on Assets (ROA) and Length of Time presence of the foreign owned banks in Indonesia on Assets or Size of Foreign Owned Banks. The main findings is that the decisions by foreign owned banks to operate and to expand its business in Indonesia is predominantly affected by the increase in realization of projects funded by Foreign Direct Investment from counterpart countries, third parties fund or domestic deposit denominated in foreign currencies, profitability of the parent banks in home country and long time presence in Indonesia to enable parent bank and their branches or subsidiaries gain better operating experience, better general managerial expertise and better knowledge of local environment. Bilateral Trade and Interest Rate Differences between home and host country has no impacts at all on Assets of Foreign Owned Banks. “Follow the customer hypothesis” is applicable in Indonesia only in terms of FDIs but not applicable in terms of bilateral trade. The findings will help management of the banks in designing more reliable business plan and also used as input or tools for policy makers prior issuing the license for the newly open foreign owned banks offices or increase of its branch offices. It is suggested foreign owned banks to consider empowering its trade financing scheme which will increase the banks size or assets.

scholarly journals DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THE VISEGRAD GROUP COUNTRIES AFTER THE EU ENLARGEMENT

2018 ◽  
Vol 24 (5) ◽  
pp. 1955-1978 ◽  
Author(s):  
Weihua Su ◽  
Dongcai Zhang ◽  
Chonghui Zhang ◽  
Josef Abrhám ◽  
Mihaela Simionescu ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Direct Investment ◽  
Labour Force ◽  
Eu Enlargement ◽  
The European Union ◽  
Macroeconomic Factors ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
Visegrad Group

Considering the role of foreign direct investment (FDI) inflows in the sustainable development of a country, the main aim of this paper is to identify some macroeconomic factors that positively or negatively influence FDI in Visegrad group countries after the European Union (EU) enlargement in 2004. We employed two types of approaches in our analysis: i) time series and ii) panel data approach. According to the generalized ridge regressions estimated in Bayesian framework, the perceived corruption was a factor that influenced FDI in all the countries. In Poland, Czech Republic and Slovakia corruption came through as a serious obstacle for FDIs since 2005, but this was not the case for Hungary. Even if Hungary is perceived as a country with high influence, foreign investors seem no to care about this fact and are more interested in the quality of human resources and the possibility to increase exports. Our panel approach based on a panel ARDL model identified a significant relationship between FDI, corruption index and labour force with advanced education however this causality was only detected in the long run. According to the Granger causality in panel, the attraction of FDI inflows succeeded in generating changes in total tax rate, but the issues related to corruption were not reduced at an acceptable level for foreign investors in Poland, Slovakia, and the Czech Republic.

scholarly journals Vertical spillovers from multinational enterprises: Does technological gap matter?

2016 ◽  
Vol 63 (3) ◽  
pp. 313-323 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Empirical Literature ◽  
Foreign Investors ◽  
Technological Gap ◽  
Local Companies ◽  
The Relationship

Foreign direct investment (FDI) from Multinational enterprises (MNEs) can augment the productivity of domestic firms insofar as knowledge ?spills over? from foreign investors to local producers. The capacity of local companies to exploit knowledge from MNEs can be affected by the technology gap between foreign and local enterprises at both horizontal (in the same industry) and vertical (in different industries) level. Whereas most of the empirical literature has focused exclusively on the analysis of horizontal and backward spillovers (i.e. between MNEs and local suppliers), the present paper also examines the relationship between FDI-related spillovers and technological gap in the Italian manufacturing sector at forward level (i.e. between MNEs and local buyers). Results suggest that at both intra-industry and forward level, the technological gap is of considerable importance for the spillover effect, particularly in the case of low-medium gap.

Determinants of Foreign Direct Investment in Less Developed Countries: A Factor Analysis Approach

2005 ◽  
Vol 6 (1) ◽  
pp. 81-94
Author(s):  
Cranmer Rutihinda
Keyword(s):  
Factor Analysis ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Infrastructure Development ◽  
Economic Stability ◽  
Significant Relationships ◽  
Quality Infrastructure

Using factor analysis this study explores factors influencing the choice of foreign direct investment in less developed countries. Results show significant relationships between foreign direct investment and institutional quality, infrastructure development, market size, availability of natural resources, and quality of human capital. However, the study found no significant relationship between foreign direct investment inflows and economic stability.

Doing Business in Africa and African Business Opportunities

2014 ◽  
pp. 119-166
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
African Countries ◽  
Performance Levels ◽  
Doing Business ◽  
Business Opportunities ◽  
And Performance

This is a key chapter in this book. It is central to the book’s message and explains fully the concept “doing business in Africa.” The chapter further classifies African business opportunities into enabling and specific opportunities. Specific opportunities are precise areas of Foreign Direct investments. The enabling opportunities are resources and institutions that make investing and doing business in Africa possible and easier. These resources and institutions include USA, European, Chinese, Brazilian, and Indian strategies to promote investment and “doing business in Africa.” These strategies further include linkages and several USA, European, Indian, Brazilian, and Chinese institutions focusing on promoting African trade and business. Moreover, the various perspectives of Foreign Direct Investment in Africa are elucidated and African countries are classified according to their economic development and performance levels.

Sign in / Sign up

Export Citation Format

Share Document